Given that the public expenditure on education is low in Sri Lanka, and that it is unlikely to increase substantially in the near future, it is important to ensure that the available funds are spent efficiently and effectively. In this context, the study will assess the following: a) the disparities in the access to education and in education outcomes across population, and their determinants. b) the equity in the distribution of subsidies received through the use of education services at different levels of education, and c) the distribution of direct and indirect out-of-pocket expenditures on education. Given the results of the above, the study will assess different means of improving the effectiveness of public spending on education. Specifically, the study will assess the constraints for improving access and the quality of education services.